Monday, January 28, 2013

Chart walk update

In
our previous chart walk update of Jan. 15 we looked at four promising stocks
which all shared the common attribute of earnings momentum and price
momentum. In this entry we’ll update the
progress of these stocks.

NiSource (NI), a gas distribution stock, was seen
strengthening on the back of strong internal momentum within the oil/gas
sector. The stock has since rallied
nearly $1/share. Traders currently long
this stock might want to raise stops to slightly under the 15-day moving
average intersection at the 26.00 level (closing basis).

Concerning Norfolk Southern Corp. (NSC), a railroad stock, I
previously noted that it was a member of the ultra-strong transportation sector
and was expected to play a belated game of “catch up” before earnings season
ends. NSC has since rallied
$4/share. You might want to take some
profit if you’re long and raise the stop to the 66.35 level (closing basis)
where the 15-day MA intersects in the daily chart.

I wrote concerning Old National Bancorp (ONB): “A laggard
bank stock that looks like it could finally catch up to its elder brethren
during this earnings cycle.” ONB
looks like it has finally begun playing catch-up, having rallied almost 3% and
broken above a 3-month trading range ceiling as of this writing. I recommend using a conservative stop loss if
you’re currently long this stock.